Half-year Financial Results released
Bidvest Namibia released its half-year results for 2016/2017, on Friday afternoon, last week. In the results commentary is is noted that various macro-economic factors in the business environment contributed to a rather disappointing overall performance by all our divisions. Despite best efforts to grow revenue, trading profit declined in the majority of the Bidvest Namibia divisions.

The Fishing division still faces various challenges including the availability of fish stocks, the introduction of new regulatory policies and the weakened exchange rate. In the freight and logistics division, growth was steady but at a slow pace with no prospects of any projects on the immediate horizon, as the oil and gas industry remains subdued. The Food and Distribution also failed to meet expectations and revenue in this sector did not grow in line with expectations. Results at the Commercial and Industrial Services and Products division were satisfactory, but the economic downturn has had an impact on consumer spending. In its automotive the performance was also disappointing as the new vehicles market plummeted by lessened consumer spending, a tight belt on government spending and interest rates and inflation on the rise.

According to the commentary there seems to be no indication that the market and economic climate will recover any time soon. The operational challenges in all divisions will be addressed and where necessary, remedial actions are being taken. Challenges are certainly evident at the Fishing division, but opportunities for new partnerships and efficiencies will be pursued. The Fishing division still has overcapacity and therefore a vessel will be disposed of. Overall, the group remains open to acquisitive growth, but the focus will be to retain its current business and to optimise operational structures and processes.

However, Bidvest Namibia remains positive that the next six months’ results will be an improvement on the fist six months.